US extends sanctions relief for Iran

Iran

WASHINGTON, September 15, 2017 – The US government on Thursday committed to continuing its sanctions relief for Iran agreed on in the 2015 nuclear deal.

The move follows the first Trump administration extension of sanctions relief in May, and a late-August UN report affirming that Iran is in compliance with the accord.

While US President Donald Trump has repeatedly criticised the deal, the US government is adhering to its commitments under the Joint Comprehensive Plan of Action, reached in July 2015 between Iran, members of the UN Security Council and Germany.

Concerns about President Trump’s stance on sanctions have proven a complicating factor for foreign investment in Iran, although the market has nevertheless drawn interest from a number of European oil majors since sanctions were lifted in January 2016.

May’s sanctions relief extension was followed by a landmark USD 4-billion investment by a Total-led consortium in Iran’s super-giant South Pars gasfield. In February, Total CEO Patrick Pouyanne had indicated that the company’s decision on the project would be based on the renewal of US sanctions relief.

Further investments in Iran’s oil and gas assets are expected in the coming months. The National Iranian Oil Company is tendering out development of the giant Azadegan oilfield, and negotiating deals on the Farzad-B and Kish gasfields and Mansouri and Changouleh oilfields, among others.